Truist Securities increased its price target for Terex Corporation to $82.00 from $72.00 and reiterated a Buy rating after the equipment maker released quarterly results and issued fiscal year 2026 guidance that incorporates the recently announced REV Group acquisition. The analyst move comes as the stock has shown significant appreciation over the past year and is trading near its 52-week high.
InvestingPro data shows Terex stock returned 56.27% over the prior 12 months and was trading close to a 52-week peak of $69.65. Shares reacted strongly to the results, closing up 17% following the release of in-line quarterly numbers and managements FY2026 adjusted EPS outlook.
Management set FY2026 adjusted EPS guidance at $4.50 to $5.00, a range that explicitly includes the REV Group acquisition on a pro-forma basis. With REV included, Terex expects total sales to rise by roughly 5% year-over-year. That guidance implies notable earnings expansion relative to the companys last-twelve-month diluted EPS of $3.33, and sits near the consensus analyst forecast of $4.46 for fiscal 2026.
On profitability, Terex projects adjusted EBITDA will increase by $100 million from the current level to a range of $930 million to $1.00 billion, which Truist characterizes as roughly a 12% gain at the midpoint. This would mark substantial growth from the last reported EBITDA of $618 million.
Truist highlighted several constructive signals in its commentary, not least managements expectation that REV Group will reach the high end of a targeted 280 basis point margin expansion over the 2025-2027 window. The bank also noted favorable price momentum metrics and an overall financial health assessment of "GOOD" from InvestingPro, which it sees as reinforcing managements optimistic outlook.
Operationally, Terex reported robust booking activity across its portfolio. Aerial bookings rose 46% year-over-year while MP bookings were up 32% year-over-year on a basis that excludes the impact of last years divestiture of the crane business. Specialty backlog is positioned to cover approximately two years of expected demand, and ES backlog remains solid at $1.1 billion.
The company is targeting at least $28 million in cost synergies tied to the REV transaction and is forecasting strong free cash flow generation equal to 80% to 90% of net income, with debt reduction listed as the primary use of cash. Terexs current levered free cash flow stands at $322 million, representing a yield of 4%.
Looking further ahead, Truist expects REV Group to be accretive to Terexs earnings in 2027, estimating that each $10 million of incremental EBITDA from REV would add approximately $0.06 to $0.07 to Terexs EPS. InvestingPro data also notes that Terex has maintained dividend payments for 13 consecutive years and reports a current ratio of 2.3, indicating liquid assets that comfortably exceed short-term obligations.
In a separate disclosure of recent results, Terexs fourth-quarter 2025 earnings slightly beat expectations on an EPS basis while revenue came in marginally below consensus. The company posted EPS of $1.12 versus a forecast of $1.11, and reported revenue of $1.3 billion against an anticipated $1.31 billion. Despite the revenue shortfall, the company described the results as evidence of continued growth, and pre-market trading following the release suggested a positive investor reception.
Investors and analysts will continue to monitor how the REV integration unfolds, whether management achieves the targeted margin expansion and cost synergies, and how free cash flow and debt reduction progress as execution priorities. For users seeking deeper, model-driven coverage, InvestingPro offers Pro Research Reports on Terex and more than 1,400 other U.S. equities.